Binh Thuan calls for investment in tourism

Bình Thuận Province has held a conference to solicit investment in high-end tourism, high-tech agriculture and clean energy projects.

At the event, provincial authorities issued investment licences to 14 projects, including nine in tourism development.

The tourism sector industry to develop a 310ha hot spring resort worth US$50 million, a lake site and an express boat service between Phan Thiết City and Phú Quý Island.

Located some 200km from HCM City on the south-central coast and having a 192km coastline, Bình Thuận is known for its beautiful beaches and sand dunes.

Proposals submitted to PM to help pig farmers     

Minister of Agriculture and Rural Development Nguyen Xuan Cuong has submitted a variety of proposed solutions to Prime Minister Nguyen Xuan Phuc to help the struggling pig-farming industry recover.

The move comes after the price of live pigs kept falling, dropping to VND30,000 (US$1.32) per kilo in recent months. With no indication of an end to this downward spiral, pig breeders across the country are facing losses, the Infonet online newspaper reported.

Previously, the price per kilo of live pig was VND40,000 ($1.76). One of the reasons for the fall is said to be oversupply.

Le Dinh Thanh, deputy director of Hoang Hoa Livestock Investment and Development Company in the central province of Thanh Hoa, said due to the price drop the company cannot sell 2,000 pigs and is losing VND1.6-1.8 billion each month on animal feed, veterinary expenses, electricity and water bills.

If the market does not recover, the company will go bankrupt, Thanh said, urging provincial authorities to come up with solutions.

Mai The Sang, head of Livestock Division at the Agriculture and Rural Development Deparment of Thanh Hoa Province, said the price of live pigs dropped at the end of 2016 due to oversupply and unchanged demand on the domestic market, as well as difficulties in meat exports.

Nguyen Van Quang, a farmer in the northern province of Thai Binh, one of provinces with the largest pig production in Viet Nam, said the price of live pig was VND52,000 per kilo in April 2016 but dropped to VND34,000 after Tet (the Lunar New Year Festical) this year. Now the price is at VND24,000 per kilo, he said.

Under the situation, minister Cuong has proposed reducing the price of animal feed and veterinary medicine, and finding a stable market for domestic pork meat. He also suggested the Government direct banks and credit institutions to erase the debts of pig breeders, and people selling animal feed to help them recover their losses.

In the long term, the ministry will push for the use of modern technology to reduce production costs, improve productivity and seek potential export markets for domestic pork meat, he said.

The ministry has planned to instruct localities across the country to review, suspend and not issue licences for new animal-feed processing facilities as the current productivity is 31 million tonnes per year, far more than the target of 25 million tonnes by 2025.

The ministry also plans to reduce the livestock inventory from the current 4.2 million sows to three million by 2019.

Long-term solutions involve applying the supply chain model to maintain food hygiene and safety, control prices, and adjust the demand and supply of pork meat, he said.

Nguyen Van Duc, head of Livestock and Veterinary Sub-department in Thai Binh Province, said farmers should reduce the pig production cost by joining hands with each other to develop livestock chains from production to consumption for sustainable development of the industry. 

Can Tho City to boost mechanic sector     

Southern Can Tho City has prepared a master plan to develop its mechanic sector by 2020 with a vision to 2030, with total investment of VND3.8 trillion (US$167.2 million).

This was stated by Duong Hong Quan, head of the Planning and Industrial Development Division under the Ministry of Industry and Trade’s Industrial Policy and Strategy Institute (IPSI) on Wednesday.

Quan said the plan aimed at ensuring the city’s mechanic sector develop on par with other leading localities in the country while basically meeting the demand of key economic sectors in the Mekong Delta region.

He said Can Tho should establish at least 100 mechanic enterprises. The city should give priority to boosting investment in projects, including rapid prototyping projects, heat and surface treatment technology, opaque steel production and machines for agricultural production and processing.

“The project needs investment of over VND3.8 trillion by 2030. It will need VND599 billion in the 2016-20 period, VND1.1 trillion in the 2021-25 period and VND2.08 trillion in the 2026-30 period. Seventy per cent of the sum would come from commercial loans, 10 per cent from foreign investment and 20 per cent from businesses and Official Development Assistance source. The capital would be used for infrastructure development and human resource training,” he added.

Nguyen Anh Son, director of the Industrial Policy and Strategy Institute – the consulting unit for the master plan, said the scale of mechanic value in the city is low. Its mechanic sector, especially the auto sector, has seen weakness, not living up to its potential.

Truong Quang Hoai Nam, vice chairman of the municipal People’s Committee, said the mechanic sector has seen the weakest growth in the city. In the past decade, the city has been finding solutions so that the sector could fulfill its role as the economic centre of the Mekong Delta region.

The master plan was prepared to meet the requirements of the sector’s sustainable development, thus promoting growth of other industries in the context of international integration.

Can Tho will limit the import of poor quality mechanic machines and equipment which could be harmful to people. It will also give priority to studies on the development of environmental industries and application of clean technologies.

Samsung to roll out Galaxy S8, S8+ in May     

Samsung will start selling its Galaxy S8 and Galaxy S8+ phones in Viet Nam from May 5 at VNĐ18.49 and VNĐ20.49 million.

To be available in three colours, the new phones have a screen 18 per cent bigger. Galaxy S8 has a 5.8 inch screen while S8+ comes in at bezel 6.2 inch.

Bezel-less on the sides, they feature an advanced, premium camera, robust security with a wide selection of biometric technologies including fingerprint scanner, iris scanner and facial recognition.

The company on the same day also launched DeX, a new service that lets users power a PC-like environment from mobile phones and Gear 360 and Gear VR.

SCIC to invest in cancer treatments

Nguyen Duc Chi, chairman of State Capital Investment Corporation (SCIC) announced it would invest in the health sector, especially cancer treatment and medicines.   

The news was announced during a meeting about the first quarter business results. 

According to a prime ministerial directive, the SCIC will prioritise the health sector. SCIC, the Vietnam National Cancer Hospital and Viet My Medical JSC signed an investment co-operation agreement to invest into a high-quality medical centre of Vietnam National Cancer Hospital in Thanh Tri District, Hanoi. SCIC also has plans to build a pharmaceutical plant to produce anti-cancer treatments.

The centre will cover 9,000 square metres inside the hospital. It will be equipped with 500 beds and modern technology. It will invite and work with top doctors to encourage the locals to take treatment in Vietnam.

"We hope this will chance will show that Vietnamese company is capable of producing cancer medicines for local demand in the most efficient and affordable method," Chi said.

SCIC is setting up a separate company for the plan and working with several foreign partners from the Europe for technology transfer. The final prices of the medicines are still being researched with experts and consultants.

"The prices will surely cheaper than the current prices," he said.

He went on to say that healthcare and education sectors are also government priorities in the coming time. There are about 126,000 cancer cases reported in Vietnam annually. However, only six centres specialised in cancer treatment and they are overloaded.

Chi said their biggest hope is to contribute to the development of local infrastructure and public healthcare.

Textile and garment see resurgence of capital flows

After a period of stagnation, capital inflows into the textile and garment industry have started pouring back, continuing to expand existing projects, with a focus on deeper exploitation of existing export markets.

The biggest increase in investment capital in the textile and garment sector in the year so far is the expansion of the plant to manufacture polyester fibre products by Taiwanese Polytex Far Eastern Group in Binh Duong Province. This investor has been granted a license to increase investment capital by an additional $485.8 million less than two years after making the first investment in the project, raising the total investment to nearly $760 million.

Although the investment in Vietnam was admittedly to take advantage of business opportunities from the Trans-Pacific Partnership (TPP) Agreement, Far Eastern affirmed that even if the TPP is suspended, their capital increase plan will remain unchanged. Earlier in June 2015, this investor was granted an investment certificate for the construction of the plant. The facility covered 99 hectares with the investment value of $274 million for the first phase.

Vietnam Textile and Apparel Association (VITAS) said that a number of South Korean investors are also planning to expand their production in Dong Nai and Binh Duong with the ambition to exploit export markets in the near future. The decision to increase capital in the context that textile and garment export has just undergone a difficult year shows the confidence of foreign investors in the sector.

Domestic textile and garment enterprises also have not lose sight of the expansion trend. Accordingly, Vietnam National Textile Garment Group (Vinatex) will launch the construction of Phu Cuong Fibre Factory phase II in Phu Cuong commune, Dinh Quan district, Dong Nai Province. This project’s scale is as same as the first phase, with a designed output of more than 5,000 tonnes of yarn per year, and holding a total investment of more than VND460 billion ($21.85 million).

In addition, the construction of Nam Dinh Fibre Factory phase II is also included in the 2017 investment plans of Vinatex, with the total investment of more than VND300 million ($14.25 million), serving export products. According to Cao Huu Hieu, head of the Investment Department at Vinatex, the investment will be made regardless of the TPP’s fate. These projects will produce inputs with an aim to enhance added value for the textile and garment sector and reduce sewing projects.

Vu Duc Giang, chairman of the VITAS, said that in the second half of 2016, the purchase and sales transactions in the Vietnamese textile and garment sector experienced signs of slowdown. However, the export performance in the first quarter of 2017 encouraged enterprises a great deal. The export turnover of $6.7 billion, up 12-13 per cent quarter-on-quarter, showed that foreign importers still praise the capacity of Vietnamese textile and garment exporters.

Than Duc Viet, deputy director general of Garment 10 Joint Stock Company, told VIR the textile and garment industry is the first in Vietnam to join the global supply chain and enterprises in the industry are quite sensitive to market conditions in each period. “Without the TPP, Vietnamese enterprises still have export markets. The reality is that the more difficulties Garco 10 Corporation – JSC faces, the stronger it will go on the offensive, investing in in expansion and acquisition of machinery, equipment, as well as factories from weaker enterprises.”

According to VITAS, in case the TPP falls through or is started without the United States’ participation, the textile and garment sector also has a complementary host of free trade agreements (FTAs) with other partners, such as Japan, the Republic of Korea, and the European Union, to achieve sound growth. The industry’s exports account for only three per cent of the total textile and garment imports in the EU and 11 per cent in the United States. In case Vietnamese companies can take full advantage of these markets, there will be opportunities to achieve breakthrough growth in the 2018-2020 period. 

KIDO's net sales grow 217% in Q1

The KIDO Group Corporation (KDC) has released its consolidated results for the first quarter of this year, with net sales of VND1.25 trillion ($55 million), driven by growth in its frozen food business and the inclusion of vegetable oil producer the Tuong An Company (TAC).

Growth in net sales was 217.4 per cent year-on-year. Its frozen food business grew 10 per cent and recorded net sales of VND260 billion ($11.4 million) thanks to solid contributions from its new Bac Ninh factory.

Gross profit stood at VND244.9 billion ($10.7 million), an increase of 52.9 per cent year-on-year, due to additional business. The gross profit margin fell due to the inclusion of TAC.

TAC’s gross profit margin improved from 10 per cent to 11.3 per cent in the first quarter and should continue to improve based on continued restructuring of its product portfolio.

KDC’s pre-tax profit stood at VND41.7 billion ($1.8 million) in the first quarter and after-tax profit at VND30.4 billion ($1.3 million), increases of 34.5 per cent and 10.4 per cent, respectively, year-on-year.

2017 will mark another key milestone, with its frozen food business expanding into new product segments. By maximizing the existing cold chain, the KIDO Frozen Food JSC (KDF) will begin selling additional products.

The Bac Ninh factory officially commenced operations at the end of 2016 and will boost KDC’s market presence in the north and increase operating efficiencies by saving on logistics costs.

KDC announced it will sell 35 per cent of KDF in March. Deputy Chairman and CEO Tran Le Nguyen told a conference introducing investment opportunities in KDF that 11.2 million shares, or 20 per cent, will be offered this month at a starting price of VND52,000 ($2.3) per share. The remaining 15 per cent will then be offered to partners and employees. 

Post-IPO, KDF plans to conduct merger and acquisitions (M&As) with dairy and frozen food companies that have good nationwide distribution systems. It will trade on the UPCoM market and will soon list on the Ho Chi Minh Stock Exchange (HoSE).

KDF targets holding a 50 per cent share of the ice cream market in Vietnam by 2020, General Director Tran Quoc Nguyen said at the group’s roadshow in Hanoi on March 31 introducing investment opportunities.

Last year, KDC purchased a 65 per cent stake in TAC, which is the second-largest cooking oil company in the country, with a 22 per cent market share. 

The move “is considered a long-term commitment by KIDO with TAC to strengthen the development of TAC’s core businesses activities,” according to a TAC statement.

KDC (formerly Kinh Do Corporation) was established in 1993 and has grown to become one of the leading consumer product companies in Vietnam. Throughout the past 23 years of growth and development, KDC has expanded beyond the confectionary category to include ice cream, yogurt, desserts, frozen foods and edible oils.

Its vision is to serve the needs of Vietnamese consumers by providing them with daily food products in various brands that enhance lifestyles and meet consumer needs throughout the day.     

Innovative tourism startups to attend boot camp

The Mekong Business Initiative (MBI) and the Mekong Tourism Coordinating Office (MTCO) have announced that eleven innovative tourism startups from Vietnam have qualified for the Mekong Innovative Startup Tourism (MIST) Startup Accelerator program.

Qualifying startups will advance to a MIST Startup Accelerator boot camp from May 5-7 in Siem Reap, Cambodia, alongside nine similar startups from Cambodia, Laos, and Myanmar. Market experts, including Deputy Director of TMG Cong Nguyen, Investment Director of Gobi Ventures Victor Chua, and founder of Triip.me Hai Ho will mentor the startups at the boot camp.

“MIST promotes sustainable tourism, giving innovative startups the potential to transform travel in one of the most dynamic regions on earth,” said Mr. Jens Threanhart, Executive Director of MTCO.

“We’re proud of this batch of startups,” said Mr. Dominic Mellor, Head of the MBI. “They are fueling the right kind of tourism growth that positively impacts the tourism experience and local communities.”

More than 250 travel tech and traditional tourism startups applied to the MIST program. The Travel Startups Incubator, based in the US, screened applications based on their potential for investment and the quality of their business plans. MBI experts performed additional due diligence, considering sustainability and other socioeconomic criteria. Finally, selections were verified in partnership with the Da Nang City Incubator (DNES).

Qualifiers from Vietnam include Bayo, Chameleon City, Dichung, Hue Free Walking Tour, I Love Asia, Innaway, Mimoza, Morning Rooms, Oneclicktogo, Tugo, and Putaleng Legend.

Approximately half of all Startup Accelerator finalists, selected by mentors, will advance from the boot camp to an investor showcase at the Mekong Tourism Forum in Luang Prabang, Laos, on June 6. There, startups will present their business plans to the media, investors, and an expert judging panel. Ultimately, four will receive innovation grants of $7,000-$10,000.

MIST is a leading tourism accelerator for Asia’s top growth markets, giving startups everything they need to launch successfully, achieve profitability, create jobs, and impact communities in the Greater Mekong Region. In addition to grants of up to $10,000, the MIST Startup Accelerator program offers exposure, connections to local stakeholders and ecosystems, individualized coaching, and the chance to network with investors and global accelerator programs. MIST is a joint project of MBI and MTCO.

MBI is an advisory facility that promotes private sector development in Cambodia, Laos, Myanmar, and Vietnam. It fosters the development of an innovation ecosystem by supporting business advocacy, alternative finance, and innovation. It is supported by the Asian Development Bank and the Australian Government.

Firms fret over draft dairy price management circular

Businesses have pointed out a number of difficulties which they would face if a draft circular on management of prices of dairy products for children under six years old and functional food is approved in its current form.

Speaking at a meeting on the draft circular, organized in HCMC on Tuesday by the Ministry of Industry and Trade, Arnaud Renard, chairman of the Nutritional Foods Group at the European Chamber of Commerce in Vietnam (EuroCham Vietnam), described Vietnam’s removal of the ceilings on dairy goods prices as a rational move.

However, the draft circular prepared by the ministry runs counter to the Pricing Law, said Renard, who is also general manager of Fonterra Brands Vietnam. 

The Pricing Law specifies that for pricing decisions, businesses will have to send a notice to the relevant agency. But the draft circular effectively requires dairy firms to ask for permission for their pricing decisions.

If their price adjustment plans sent to the relevant agency are not approved, enterprises would become helpless, he said, and this is a form of State interference in businesses’ decision making.

Nguyen Loc An, head of the ministry’s domestic market department, which is responsible for drafting the circular, said the department had strictly referred to the Pricing Law and the guidance documents for the law’s execution.

“Under Government Decree 177/2013 guiding the implementation of the Pricing Law and Government Decree 149/2016 providing additional regulations on milk for children under six years old, the Ministry of Industry and Trade has full power (over pricing matters),” said An.

He added the two decrees allowed the Ministry of Finance to issue price declaration forms and provide guidelines for price declarations. The Finance Ministry’s Circular 56/2014 and Circular 233/2016 stipulate that enterprises might be requested to explain their pricing policy.

If their explanations are found to be unreasonable, they could not make any price changes.

An official at the HCMC Department of Industry and Trade said dairy price adjustments by up to 5% must be reported to the relevant State agency. Even if prices are adjusted piecemeal within a certain period of time and the total change is over 5%, firms must also declare their new prices under the draft circular, the official noted.

Regarding consecutive price change, a representative of Vinamilk, the country’s leading dairy processor, said the draft circular should make clear when the term “consecutive” applies; whether it is consecutive in six months, one year or two years remains unclear.

The price caps on dairy goods for children aged under six were gone in late March. But the Ministry of Industry and Trade has replaced the Ministry of Finance to manage dairy goods prices.

The Ministry of Industry and Trade is gathering comment on the draft circular on management of prices of dairy products for children under six years old and functional foods.

‘New Eximbank’ plan in the making

Eximbank is working on a comprehensive restructuring plan dubbed “New Eximbank” in the hope of returning to its golden days but whether the bank’s leadership can deliver remains a big question mark.

At a press conference held ahead of a general shareholder meeting set for Friday, Eximbank leaders made no mention of the election of board members, a highly contested issue which has dogged the bank in recent years.

Instead, Yutaka Moriwaki, deputy general director of Eximbank, spent nearly two hours talking to the press about the “New Eximbank” restructuring plan.

The Japanese executive touched on the unresolved issues faced by Eximbank such as the lack of a sound business strategy and the weakened morale of staff caused by frequent leadership changes.

Moriwaki noted Eximbank had got pessimistic reviews from the market and that the bank was falling behind other banks of same size.

Eximbank’s profit has been sliding since 2012. In 2011, its after-tax profit was about VND3 trillion but plunged to VND2 trillion in 2012 and a mere VND308 billion last year.

The “New Eximbank” plan, which Moriwaki and Nguyen Quoc Huong, another deputy general director of the bank, are in charge of, is believed to bring significant changes in Eximbank’s business operations.

Moriwaki said the bank would focus on its core operations such as lending to exporters, importers, retailers, and automobile buyers.

He said he is confident that Sumitomo Mitsui Banking Corporation (SMBC), which holds a 15% stake in Eximbank, could help the bank connect with Japanese businesses in Vietnam, and provide financial support and trade finance.

He repeatedly mentioned the recruitment of people for senior positions in charge of a particular task to revamp the bank.

The biggest concern, however, is who would take the helm. The list of candidates for the board of directors has been approved by the central bank.

A source close to the situation said the list, apart from an addition from the central bank, consists of all the incumbent members. Differences among members of the board, which have dragged the bank into crisis in the past, would spell further trouble for the bank if not well solved.

S.Korea covers half ad spend on theme tour programs

South Korea will cover 50% of ad spending on theme tours arranged by Vietnamese travel firms, according to the Korea Tourism Organization in Vietnam (KTO Vietnam).

Le Thi Thu Trang, marketing manager of KTO Vietnam, said at a Korea tourism promotion program in HCMC on April 19, “We will support companies to pay half the costs for advertisements of Korea theme tours.”

Korea is pushing for nine theme tours on art performances, traditional markets, cultural festivals, sports, international events, special experiences, food, film studios and the 2018 Olympic Winter Games.

Vietnam has become a key source market for Korea’s tourism sector. More than 260,000 Vietnamese visited the Northeast Asian country last year.

KTO forecast early this year that around 300,000 Vietnamese tourists would come to Korea this year. However, the organization has revised up the forecast to 340,000 due to an increase of over 30% in Vietnamese tourist arrivals in Korea in the first quarter, Trang told the Daily.

Eleven startups chosen for MIST program

The Mekong Business Initiative (MBI) and the Mekong Tourism Coordinating Office (MTCO) have announced that 11 innovative tourism startups in Vietnam have been picked for the Mekong Innovative Startup Tourism (MIST) Startup Accelerator program.

More than 250 travel tech and traditional tourism startups applied to the MIST program. The Travel Startups Incubator, based in the U.S., screened applications based on their potential for investment and the quality of their business plans.

MBI experts performed additional due diligence, considering sustainability and other socio-economic criteria. Finally, selections were verified in partnership with the Danang City Incubator (DNES).

The qualifying startups will advance to a MIST Startup Accelerator boot camp from May 5 to 7, 2017 in Cambodia alongside nine innovative tourism startups from Cambodia, Laos and Myanmar. Market experts including deputy director of TMG Cong Nguyen, investment director of Gobi Ventures Victor Chua and founder of Triip.me Hai Ho will mentor startups at the boot camp.

Dominic Mellor, head of the MBI, said, “We’re proud of this batch of startups. They are fueling the right kind of tourism growth that positively impacts the tourism experience and local communities.”

Some half of all Startup Accelerator finalists, selected by mentors, will advance from the boot camp to an investor showcase at the Mekong Tourism Forum in Luang Prabang on June 6. There, startups will present their business plans to media, investors and an expert judging panel. Ultimately, four will receive innovation grants of US$$7,000-10,000.

MIST is a leading tourism accelerator for Asia’s top growth markets, giving startups what they need to launch successfully, achieve profitability, create jobs and impact communities in the Greater Mekong Region.

In addition to grants up to US$10,000, the MIST program offers exposure, connections to local stakeholders and ecosystems, individualized coaching and the chance to network with investors and global accelerator programs.

Fertilizer stocks jump on supporting news

The local stock market advanced for the second straight session on April 19 as some large caps and fertilizer stocks made nice gains on supporting information, lifting the VN-Index up 1.84 points, or 0.26%, at 716.77.

The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade has recently announced it has received a proposal from local fertilizer producers to apply an anti-dumping tax on imported fertilizers. VCA is getting more information on the capacity and production volume of local fertilizer producers to decide whether to proceed further.

According to Viet Capital Securities Company (VCSC), fertilizer imports into Vietnam increased due to regional oversupply last year. These imported fertilizers were priced 5-10% lower than local products.

Meanwhile, the fertilizer industry has been facing numerous difficulties related to fake fertilizers and poor-quality imported fertilizers. Competition was even tougher in the first quarter of 2017 when imported fertilizer volume increased sharply over the same period last year.

“Therefore, we believe this proposal is a positive move to protect local producers against cheap imported products. The anti-dumping tax, if applied, would help stabilize the fertilizer industry and would be a catalyst not only for DPM, but also for other fertilizer stocks such as DCM, BFC and LAS,” VCSC said.

The fertilizer sector performed strongly on April 19 with DCM, DPM, PSW, VAF and LAS shooting up to the ceiling prices. The remaining stocks TSC and BFC also jumped 2.9% and 5.6% respectively.

In the banking sector, VCB made a slight rebound while STB, BID, MBB and ACB still closed in the red. Among large caps, MWG climbed 2.5% to close at the intraday high at VND167,000 per share, while VJC increased 1.9% at VND131,400 a share.

However, turnover on the HCMC market fell sharply with trading value shrinking 26% against the previous day at VND3.1 trillion and volume dropping 20% to 151.5 million shares. FLC led the market for liquidity with 19.4 million shares traded, followed by HQC with 8.8 million shares and DLG with 8.2 million shares.

The Hanoi market, meanwhile, failed to extend its gain as pillar stock ACB failed to give any support. The HNX-Index closed almost unchanged, sliding 0.01% from the session earlier at 89.11, with turnover tumbling nearly 40% to VND535 billion.

SHB was the strongest gainer, rising 1.3% at VND7,500 a share on matching volume of 23.7 million shares. Foreigners net sold over 2.8 million SHB shares during the day.

Vietnam lowers ADB loans by US$250 million

Deputy Prime Minister and Foreign Minister Pham Binh Minh has approved a Ministry of Planning and Investment proposal to reduce Asian Development Bank (ADB) loans by US$252.9 million, Phap Luat newspaper reports.

The loan reduction results from long delays at four projects funded by the ADB. The Government Office recently wrote to relevant ministries and agencies announcing inspection results on ADB-funded projects.

Earlier, the Ministry of Planning and Investment and ADB dispatched a joint working group to check some projects carried out last year. The group found the four projects worth a combined US$1.37 billion have been slowly implemented.

A mere US$66 million, or less than 5% of the total sum, was disbursed for these projects which were four years behind schedule.

The projects are Metro Line 2 in HCMC, the Hanoi University of Science and Technology, the Nhon-Hanoi Metro Line, and the Water Sector Investment Program.

Imports from China on the rise

In the first quarter of this year, imports from China jumped by 18.9% to nearly US$12.7 billion against the same period last year, making up 27.3% of the country’s total imports, according to preliminary statistics from the General Department of Vietnam Customs.

It shows a sharp increase after a standstill. In March alone, Vietnam businesses spent US$5.1 billion on importing products from China. The figure was much higher than that of imports from Japan which was just US$3.7 billion.

Five import products in the first quarter, each with a value of more than US$1 billion, were machines, equipment and tools (US$2.5 billion), telephones and components (US$1.6 billion), computer, electronics and components (US$1.6 billion), fabrics (US$1.2 billion) and steel (US$1.2 billion).

According to experts, the trade deficit was resulted from China’s taking full advantages of the ASEAN - China free trade agreement (ACFTA) and the Vietnam-China border trade agreement. Meanwhile, Chinese contractors have imported a huge volume of machines and equipment after winning bids to implement investment projects in Vietnam.

Thus, it will be very difficult to control import activities and trade deficit with China without a breakthrough solution.

Novaland confident of achieving ambitious financial targets     

Giant builder Novaland group (NVL) on Friday said it plans to enlarge its land ownership through mergers and acquisitions this year.

Speaking to the media before the company’s annual shareholders meeting, Phan Le Hoa, the company’s director of capital market and investor relations,said the M&A activities would target some housing projects in key locations in HCM City and other cities like Can Tho, Da Nang and Vung Tau.

NVL would develop over 10 million square metres of land in the next five years, and is building its first resort in Can Tho, he said.

Expressing confidence about the company achieving its targets this year, he said sales would top VND17.5 trillion (US$767 million) and after-tax profit, VND3.1 trillion ($136 million).

Last year they were respectively VND7.4 trillion ($324 million), up 10.3 per cent, and VND1.7 trillion ($74.5 million), a 276 per cent rise.

“Until 2020 the company’s profits and revenues will be steady and achieve the target thanks to projects sold in between 2014 and 2016 and to be handed over this year and the years to come.”

This year alone around 4,100 flats in 11 projects will be handed over.

Last year, Novaland was one among the market leaders in HCM City, selling 8,000 units, or 23 per cent of the city’s total sales.

This figure was 13.3 per cent up from 2015, the company said.

Novaland has 40 projects on hand with products in many segments like villas, houses, apartment, office-tel, land plots.

This year the company plans to complete 10 projects, including Lakeview City in District 2, The Tresor in District 4, RiverGate in District 4 and Orchard Garden in Phu Nhuan District. 

Over 92 percent of VN’s rice export in Q1 under firms’ deals

More than 92 percent of Vietnam’s rice exports in the first three months of the year was under trade deals of businesses, according to the latest report of the Vietnam Food Association (VFA). 

The report also said Vietnam exported 1.1 million tonnes of rice, down 23 percent in volume and 18 percent in value compared to the same period last year.

China remained the largest rice importer in the reviewed time with 448,000 tonnes, making up 41 percent of the total rice exports, followed by the Philippines and Africa with 20 percent and 13 percent, respectively. 

Average price of rice export in Q1 reached 432 USD per tonne, up 27.7 USD per tonne against last year. Rice price in March climbed to some 445 USD per tonne, increasing 42.8 USD due to a surge in domestic rice price. 

According to Huynh The Nang, Chairman of VFA, many key rice importers of Vietnam, particularly in Southeast Asia, have switched their rice import mechanisms from inter-governmental deals to trade deals of private companies or liberalise rice trade.

He added that Vietnam’s rice exporters should prepare to better adapt to market demand in the future.

Hanoi to host international trade fair for construction

The Vietnam International Trade Fair for Construction – Machinery, Equipment, Technology, Vehicles and Materials (Contech Vietnam 2017) will take place at the National Exhibition Construction Centre in Hanoi from April 25-28.

Vice President of the Vietnam Construction Association Thai Duy Sam told a press conference on April 20 that construction is one of the sectors with the growth rates of above 15 percent in Vietnam over the past few years. The robust growth has made the country a emerging attractive market for construction machinery and equipment in Southeast Asia.

The trade fair will provide a platform for exhibitors to not only introduce new technologies but also seek partners and promote technological transfer, he said, adding that through such interactions, more effective and environmentally-friendly construction solutions will be applied to improve businesses’ competitive advantages.

On display at the fair will be products and services for civil construction, industrial construction and infrastructure; building materials; and technologies, machinery and equipment of transportation and mining industries.

A series of conferences and seminars will be held on the sidelines of the event, including seminars on environmental protection technology in the mining industry, and green, energy-efficient building materials.

It is estimated that about 200 domestic and foreign exhibitors will participate in the fair, including those from the EU, Japan, Singapore, the Republic of Korea, Taiwan (China), Malaysia and China.

Foreigners challenged by apartment ownership in HCM City

The current regulations on land for national defense have posed quite a challenge for foreigners wishing to legitimately own apartments in Ho Chi Minh City.

The municipal Land Registration Office has stopped issuing ownership certificates to foreigners who purchased residences after December 10, 2015.

The situation has become an aching problem for those foreign citizens attempting to settle in a stable home in the southern Vietnamese metropolis.

In January 2016, K. Elias, an American citizen, bought an apartment previously owned by a Vietnamese in the New Saigon apartment complex in Nha Be District.

After making all necessary payments, Elias is still struggling to register for official ownership of his new home.

Similar to Elias, C.Y.O., a Malaysian national, purchased a unit in an apartment building in District 7 three years ago.

According to the developer, all Vietnamese citizens living in the complex have been given their ownership certificate, leaving C. as the only person still unable to obtain the paperwork due to his foreign nationality.

Project developers throughout Ho Chi Minh City have complained that the Land Registration Office’s refusal to grant documents to foreigners is having negative impacts on their contracts.

“This affects the image and reputation of Vietnamese real estate companies as well as the country’s general investment environment,” a company director stated.

To deal with the problem, some businesses are suggesting that their foreign clients allow a Vietnamese spouse to sign as the legal property owner.

After being granted the ownership certificate, the couple can perform a procedure to change the property into a mutual asset.

“This is a temporary solution with hidden risks and few clients agree to follow such a plan,” a developer in Phu Nhuan District said.

According to a decree explaining the implementation of Vietnam’s housing laws, foreigners are only permitted to own up to 30% of the apartments in a project and are restricted from purchasing property built in areas preserved for the protection of national defense and security.

Whether or not a piece of land is used for such function is determined by the Ministry of National Defense and the Ministry of Public Security.

Based on these restrictions, the department of construction in each locality is supposed to publicly announce a list of housing projects available to foreign buyers.

However, the Ho Chi Minh City construction department has confirmed that the list has yet to be concluded by the two ministries.

As a result, the Land Registration Office has received no guidelines to decide whether certain housing projects are available for foreigners to buy.

As the decree took effect on December 10, 2015, foreign customers who bought their homes after the date are subjected to the regulation.

The municipal Department of Construction has reported the situation to the city’s administration and asked the two relevant ministries to finalize their land classification.

An official from the city’s land office asserted that competent authorities must solve this problem as soon as possible to remove property purchasing obstacles for foreign buyers and improve the investment environment.

Forum discusses ways to develop export products

The 2017 Vietnam Export Promotion Forum took place in Hanoi on April 20 to discuss ways to develop and add value to products for export.

The event was held by the Vietnam Trade Promotion Agency (Vietrade) at the Ministry of Trade and Industry in response to the Vietnam Export Strategy from 2011-2020 with a vision to 2030.

The forum is an annual event to provide an opportunity for enterprises, policymakers and economic experts to exchange information, evaluate export markets and develop their markets, Vietrade director Bui Huy Son said.

The forum offers a chance to propose policies to enhance exports to improve Vietnam’s position as a capable, reliable and sustainable exporter, he added.

Vietnam’s export reached 176.6 billion USD last year, an increase of nine percent from a year earlier, despite extreme weather conditions and climate change threatening to decrease the country’s agricultural productivity, Son noted.

Director of the Institute for Brand and Competitiveness Strategy Tran Van Nam said export promotion activities play a vital role in bridging supply and demand as well as production and distribution to markets.

Nam cited the fact that agricultural production can generate a huge amount of farm products but the country has struggled to distribute and export these products due to farmers’ lack of promotional skills.

Trade promotion organisations should support the farmers by helping them access new markets both at home and abroad and encouraging market-oriented production, he suggested. 

CHOBA project continues improving rural sanitation

The second phase of the Community Hygiene Output-Based Aid (CHOBA2) Programme was reviewed in Tra Vinh on April 20.

The project, worth nearly 9.5 billion VND (418,000 USD) started in the Mekong Delta provinces of Ben Tre, Tra Vinh, the central province of Thanh Hoa and the northern provinces of Hoa Binh and Ninh Binh from September 1, 2016.

The project, funded by the East Meets West (EMW) foundation aims to encourage 35,000 rural households in the localities to build sanitary toilets in line with Health Ministry standards to improve public health. So far, some 6,400 households have built standard toilets.

According to Tran Thi Huong, Vice President of Vietnam Women’s Union, the first phase of the CHOBA project, worth over 97.5 billion VND (4.29 million USD), also funded by the EMW foundation, was implemented from 2012 to 2016, benefiting 110,825 households in 10 provinces.

In Tra Vinh, the CHOBA2 is being implemented in 30 communes in the districts of Tra Cu, Tieu Can, Cang Long, and Cau Ke, with 7,500 households involved.

Tu Thi Riem from the provincial Women’s Union said the Project Management Board, together with local authorities and relevant sectors have updated the disbursement from the Bank for Social Policy – Tra Vinh branch.

Technical assistance has been provided to help households build sanitary toilets. So far, more than 1,700 households in the province have built toilets under the programme.

Luong Thi Hoa, Vice President of the Thanh Hoa provincial Women’s Union said, the CHOBA2 project has received support from local authorities at all levels.

The poor and near-poor households in Ha Trung district received aid of one million VND (44 USD) each, sourced from the district’s budget to build toilets. They also received other assistance from communal level.

CHOBA2 will last until May 1, 2018.

President meets ethnic village chiefs, artisans, prestigious people

President Tran Dai Quang met 112 chiefs of villages and communes, artisans and prestigious people from ethnic minority groups in 15 northern mountainous provinces at the Presidential Palace in Hanoi on April 20, part of activities to celebrate Cultural Day of Vietnamese Ethnic Groups (April 19). 

Speaking at the event, the President affirmed that since its establishment, the Party has placed importance on ethnic affairs and solidarity of ethnic groups, especially the preservation and upholding of ethnic groups’ traditional cultural values. 

The leader lauded the efforts of ethnic chiefs of villages, artisans and prestigious people in the north in the national construction and defence cause, including ethnic cultural affairs, saying that they have made important contributions to improving the lives of ethnic minorities. 

He hailed the Ministry of Culture, Sports and Tourism (MoCST) for working with ministries, agencies and localities to hold a conference gathering chiefs of villages, artisans and prestigious people from ethnic minority and border regions and a seminar discussing preserving ethnic cultural identities. 

As the ethnic minorities still live in need, they are easily incited by hostile forces which seek to divide them and sabotage national unity, causing political instability, he said, adding that this requires the MoCST, ministries, agencies and localities to continue implementing the Party and State’s resolutions and decrees on ethnic affairs and policies, with a focus on the resolution adopted by the 12th National Party Congress and the 12th Party Central Committee’s resolution on developing Vietnamese culture and people for national sustainable development. 

The leader requested improving the quality of cultural activities in tandem with socio-economic development, ensuring national defence-security, and new rural construction while involving the entire political system and people in preserving traditional cultural values. 

He also underscored the importance of issuing policies to instruct village chiefs, artisans and prestigious people how to execute the Party and State’s ethnic policies. 

The host took the occasion to ask them to carry out their role in mass mobilisation to implement the Party’s guidelines and policies and enforce laws on ethnic affairs and culture.

Over the past years, the MoCST has proposed practical measures and coordinated with ministries, agencies and localities to hold regional cultural exchanges, contributing to honouring cultural values of ethnic groups and strengthening national unity.

HCM City boosts international cooperation in expanding Binh Dien market

Ho Chi Minh City welcomes experience and technology from international partners for the expansion and management of Binh Dien wholesale market, which is expected to become a trade centre and tourist destination.

Tran Vinh Tuyen, Vice Chairman of the Ho Chi Minh City People’s Committee, made the remark at a meeting in the southern city on April 20, calling for collaboration with his guest Bertrand Ambroise, director for international cooperation at Semmaris, which administers the Paris-based Rungis International Market, the world’s largest wholesale food market.

Ambroise stated with the experience from running Rungis, Semmaris is willing to consult and transfer technologies on market building and operation to the Sai Gon Trading Group (SATRA) to oversee Binh Dien market.

With a view to helping Binh Dien turn into a big wholesale market, Semmaris intends to focus assistance on warehouse management, waste treatment and freezer technology.  

Ambroise said his organisation also wants to increase trade transactions between the two markets and help Vietnamese agricultural products access EU markets.

The success of the Binh Dien expansion project depends largely on support from local authorities and close work between the public and private sectors, he added.

Commending his guest’s proposal, Tuyen suggested Semmaris and SATRA engage in research collaboration for a joint project to ensure hygiene and product quality at the expanded Binh Dien market.

The sides should boost transactions, contributing to bilateral trade between Vietnam and France, the official noted.

With 492 projects worth 3.4 billion USD, France is ninth among foreign investors in Ho Chi Minh City.

Vietjet Air targets 1.8 billion USD in 2017 revenue

The low-cost carrier Vietjet Air targets revenue of 42 trillion VND (about 1.8 billion USD) in 2017, with pre-tax profit of over 3.6 trillion VND (158.4 million USD) with 50 percent of dividend.

The information was released at the firm’s shareholders’ meeting in Hanoi on April 20, during which leaders of Vietjet Air said that the carrier will operate 51 airplanes for over 98,100 flights carrying about 17 million passengers in the whole year.

At the same time, Vietjet will also increase its air routes to 78, including 37 international ones.

Luu Duc Khanh, CEO of Vietjet, said that after five yearsof operation, Vietjet transported over 34 million passengers and more than 158,100 tonnes of cargo through nearly 204,400 flights on around 60 domestic and international routes.

Vietjet increased itscapital from 600 billion VND in 2012 to 3,000 billion VND in 2016, while raising the equity capital to over 4.7 trillion VND (210.5 million USD). It enjoyed an annual growth of over 70 percent in passenger transport revenues in the 2012-2016 period.

Last year, Vietjet earned revenue of 27.5 trillion VND and pre-tax profit of over 2.7 trillion VND.

At the meeting, stakeholders agreed to raise the ratio of foreign investors’ share from 30 percent to 49 percent, thus improving the liquidity of its transactions.

They also approved a list of six candidates for seats in the Board of Directors.

Tourism development prioritised in Son La

The northern mountainous province of Son La is making adjustments to its master plan on tourism development while asking the Government to help it develop local traffic infrastructure.

Secretary of the provincial Party’s Committee Hoang Van Chat made the statement at a working session with Minister of Culture, Sports and Tourism Nguyen Ngoc Thien in Son La city on April 20.

Briefing the minister about local development, culture and tourism, Chat said that traditions and cultural identity of ethnic minority groups have been preserved for years.

Traditional festivals have been restored along with community culture and eco-tourism development, he said.

The province earned 888 billion VND (39 million USD) from tourism services in 2016, or 143 percent of its targets. Some 1.85 million people visited the locality, 14 percent above the goal.

Minister Thien lauded the province’s efforts to develop agriculture coupled with eco-tourism to create a breakthrough in socio-economic development.

He also praised the province’s achievements in preserving and promoting values of tangible and intangible heritages, saying that they are elements for sustainable tourism development.

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